Yuan ex­change rate hits 6-year low

China Daily (Canada) - - NEWS CAPSULE -

The Peo­ple's Bank of China set the mid­point of the cur­rency at 6.7008 against the US dollar, which is the weak­est level since Septem­ber 2010 and about 0.3 per­cent weaker than on Sept 30, the last trad­ing day be­fore the Na­tional Day hol­i­day.

An­a­lysts at­trib­uted the fluc­tu­a­tion to the strong volatil­ity of other ma­jor cur­ren­cies in the past week, es­pe­cially the Bri­tish pound, and ris­ing mar­ket ex­pec­ta­tions of a pos­si­ble in­ter­est rate in­crease by the US Fed­eral Re­serve by year's end.

The pound fell un­ex­pect­edly by more than 6 per­cent against the dollar on Friday.

“The off­shore yuan, as a risk as­set, can­not be di­vorced from the pound's im­pact,” said Wang Youxin, an econ­o­mist at the In­sti­tute of In­ter­na­tional Fi­nance, a think tank af­fil­i­ated with the Bank of China.

Re­cent data raised ex­pec­ta­tions for a rate hike.

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